Authorizing The Government Service Insurance System To Assists In The Construction, Development, And/Or Operation Of A New Manila Hotel And Dissolving The Existing Manila Hotel Company.

MALACAÑANG
M a n i l a

PRESIDENTIAL DECREE No. 645 January 28, 1975

AUTHORIZING THE GOVERNMENT SERVICE INSURANCE SYSTEM TO ASSISTS IN THE CONSTRUCTION, DEVELOPMENT, AND/OR OPERATION OF A NEW MANILA HOTEL AND DISSOLVING THE EXISTING MANILA HOTEL COMPANY.

WHEREAS, since the advent of the New Society, the country has experienced an unprecedented growth and expansion of the tourist industry, and has seen an influx into the Philippines of tourists, visitors, and businessmen from all parts of the world;

WHEREAS, in addition, Manila has often been chosen the venue of international conferences and conventions;

WHEREAS, these developments have created a serious shortage of suitable hotels and related tourist facilities in the country;

WHEREAS, it has become imperative that additional hotels and related tourist facilities be provided to accommodate the projected increases in the volume of tourists, visitors, and businessmen coming into the country in the future;

WHEREAS, the National Government, cognizant of the manifold benefits brought about by the continued expansion of the country's tourist industry, has made it a matter...

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Summary of Presidential Decree No. 645

Dissolution and Liquidation of Manila Hotel Company
- The existing Manila Hotel Company is dissolved and liquidated. (Section 1)
- The net asset value of the shares will be determined based on accounting and appraisal principles. (Section 1)
- The minority stockholders will be compensated based on the net asset value. (Section 1)
- If liquid assets are insufficient, the Government Service Insurance System (GSIS) will pay the minority stockholders from its own funds. (Section 1)
- The records, properties, equipment, assets, rights, and choses in action of the Manila Hotel Company are transferred to GSIS. (Section 1)
- GSIS is not liable for any capital gains tax or other taxes due to the liquidation. (Section 1)
- Employees of the Manila Hotel Company are entitled to one month's pay for every year of service, up to one year's pay, if not eligible for retirement. (Section 1)

Construction and Development of a New Manila Hotel
- GSIS is authorized to initiate and pursue plans for the development, construction, and operation of a new Manila Hotel, either singly or in partnership with other entities. (Section 2)
- GSIS may form a partially or wholly-owned subsidiary corporation for this purpose. (Section 2)
- GSIS is authorized to cause the partial or full demolition of the present Manila Hotel building and renovate any portion of the old building. (Section 3)
- GSIS is authorized to negotiate and contract for the demolition, removal, disposal, construction, renovation, materials, supplies, equipment, machineries, architects, engineers, or firms necessary for the new Manila Hotel. (Section 4)

Land Transfer and Contribution
- Two parcels of land covered by TCT No. 67398, with a total area of 11,663.40 square meters, are transferred and ceded to GSIS by the National Government. (Section 5)
- The land transfer is an additional contribution of the National Government to augment the actuarial solvency of the Retirement Insurance Fund administered by GSIS. (Section 5)
- The land transfer is in consideration of the financial and other support to be extended by GSIS for the demolition, construction, development, and operation of the new Manila Hotel. (Section 5)

Other Provisions
- Any inconsistent laws, executive orders, rules, and regulations are repealed or modified accordingly. (Section 6)
- All concerned parties are directed to implement this decree. (Section 7)